Gold price (XAU/USD) trades near the weekly high during the Asian session on Wednesday and looks to build on the previous day's goodish rebound from the $2,880 region, or a one-week low.
Investors remain worried about the potential economic fallout from US President Donald Trump's trade tariffs, which, in turn, is seen as a key factor that continues to underpin the safe-haven bullion.
Moreover, expectations that the Federal Reserve (Fed) will cut interest rates several times this year amid concerns about a tariff-driven slowdown in the US economic activity lend additional support to the non-yielding yellow metal.
Meanwhile, the US Dollar (USD) edges higher and recovers a part of the overnight losses to its lowest level since mid-October amid some repositioning trade ahead of the crucial US consumer inflation figures. Adding to this, the optimism over the passage of the six-month US funding bills, Ukraine's acceptance of the US proposal for a ceasefire with Russia, and a positive risk tone might cap gains for the Gold price. Nevertheless, the fundamental backdrop seems tilted in favor of bullish traders and supports prospects for a further appreciating move, suggesting that any corrective pullback might be seen as a buying opportunity.
Source: FXStreet
